Recently, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce jointly released the full text of the Catalogue of Industries Encouraging Foreign Investment (2025 Edition) (hereinafter referred to as the Encouragement Catalogue), specifying its formal implementation starting from February 1, 2026. The new edition contains a total of 1,679 entries, representing a net increase of 205 entries and 303 modifications compared to the 2022 edition. Notably, the field of chemical new materials has become one of the core policy-encouraged directions, covering a wide range of key sub-categories such as polybutadiene rubber (BR), polyphenylene sulfide (PPS), and cycloolefin polymers (COC/COP), providing clear guidance for global chemical enterprises to deepen their presence in the Chinese market.
It is understood that the Encouragement Catalogue is divided into two parts: the Nationwide Catalogue of Industries Encouraging Foreign Investment and the Catalogue of Advantageous Industries for Foreign Investment in Central, Western, and Northeastern Regions, containing 619 and 1,060 entries respectively. Compared to the previous edition, these represent increases of 100 and 105 new entries, and modifications of 131 and 172 entries, respectively. One of the core orientations of this policy adjustment is to guide foreign investment into advanced manufacturing. As an essential foundational material for advanced manufacturing, chemical new materials have become a key area for intensified policy support.
Within the chemical raw materials and chemical products manufacturing sector, the new catalogue explicitly lists multiple encouraged entries, forming a full-chain coverage from basic raw materials to high-end products.
- Supporting Raw Materials for Synthetic Materials: Key encouragement is given to the production of products such as propylene oxide via hydrogen peroxide oxidation of propylene (HPPO), dimethyl 2,6-naphthalenedicarboxylate (NDC), 1,4-cyclohexanedimethanol (CHDM), adiponitrile (via butadiene process, capacity ≥50,000 tons/year) and hexamethylenediamine, and norbornene, aiming to precisely fill gaps in key segments of the high-end synthetic materials industry chain.
- High-End Polyolefins: Materials like high-carbon α-olefin copolymerized metallocene polyethylene, cycloolefin polymers (COC/COP), and highly reactive polyisobutene are explicitly included in the encouraged scope. These materials are widely used in high-end manufacturing fields such as electronic packaging and medical packaging.
- Basic Chemical Raw Materials: Production of basic chemical raw materials like polyethylenepolyamine, 1,3-propanediol, and polyvinylpyrrolidone also receives policy support.
Specialty rubbers and engineering plastics, as core categories of chemical new materials, receive significant policy emphasis.
- Specialty Rubbers: Explicit encouragement is given to the production of acrylic rubber, epichlorohydrin rubber, polybutadiene rubber (BR), solution polymerized styrene-butadiene rubber (SSBR), as well as specialty fluororubber, silicone rubber, fluorosilicone rubber, and thermoplastic polyurethane rubber.
- Engineering Plastics & Plastic Alloys: The development and production of high-performance products such as polyphenylene sulfide (PPS), polyetheretherketone (PEEK), polyimide (PI), polysulfone, polyethersulfone, polyarylate (PAR), polyphenylene ether, specialty polyamide (PA) and its modified materials, and liquid crystal polymer (LCP) are included in the encouraged list. These materials possess excellent properties like high temperature resistance, corrosion resistance, and high strength, serving as key supporting materials for strategic emerging industries like new energy vehicles, aerospace, and electronic information.
Green, low-carbon development and high-end fine chemicals have become important directions for policy encouragement.
- Fine Chemicals: New catalyst products, electronic chemicals, paper chemicals, leather chemicals, and oilfield additives are among the encouraged areas. Specific support is given to production capacities related to technologies like the ultra-high-pressure continuous production of isotridecanol (a key surfactant raw material) and the nitrogen-protected double-shell tower safe production technology for refined ethylene oxide.
- Eco-Friendly Products: New entries encourage the production of products with low volatile organic compound (VOC) content, including sealants, adhesives, potting compounds, threadlockers, industrial cleaning agents, as well as water-based inks and adhesives, and electron beam/UV-curable low-VOC inks and adhesives.
- New Plastic Additives: Policy favor is given to the R&D and production of efficient and environmentally friendly additives like polyester plasticizers, halogen-free flame retardants, permanent antistatic agents, organic heat stabilizers, and nucleating agents.
- Fluorine Materials: Key support is directed towards the production of high-performance fluororesins, fluorinated membrane materials, medical fluorine-containing intermediates, as well as refrigerants, cleaning agents, and blowing agents with zero ozone depletion potential (ODP) and low global warming potential (GWP) compliant with international conventions.
- Hydrogen & Industrial Gases: The development, storage, transportation, and liquefaction of green hydrogen fuel production technologies (e.g., hydrogen from chemical by-products, bio-hydrogen, renewable energy electrolysis for hydrogen) and the production and supply of large-scale or high-purity industrial gases are included, aligning with the "Dual Carbon" development goals.
- Green Chemical Technologies: Policy guidance is provided for low-carbon upgrading processes for petrochemical feedstocks, such as electrically-driven ethylene cracking, reverse water-gas shift and partial oxidation processes converting CO2 and light hydrocarbons to CO, and green chemical technologies like hydrogen-ammonia and hydrogen-methanol production, storage, and transportation via renewable energy electrolysis.
The high-end development of chemical fibers and composite materials also receives policy focus.
- High-Performance Fibers & Products: Encouragement is given to the development and production of carbon fiber (CF) with tensile strength ≥4200 MPa and elastic modulus ≥230 GPa, as well as products like aramid fiber (AF), polysulfonamide fiber (PSA), ultra-high molecular weight polyethylene fiber (UHMWPE), polyphenylene sulfide fiber (PPS), polyimide fiber (PI), polytetrafluoroethylene fiber (PTFE), and polybenzobisoxazole fiber (PBO).
- New Polyesters & Fibers: The development and production of polytrimethylene terephthalate (PTT), polyethylene naphthalate (PEN), polybutylene terephthalate (PBT), and polycyclohexylenedimethylene terephthalate (PCT) are included.
- Green Fiber Materials: Support is given to the industrialization of biodegradable fiber materials like polybutylene succinate (PBS), polybutylene adipate terephthalate (PBAT), polycaprolactone (PCL), polyhydroxyalkanoates (PHA), and polylactic acid fiber (PLA), as well as bio-based fiber materials like bamboo/hemp-based regenerated cellulose fiber, alginate fiber, and chitosan fiber.
- New Polyamides: Policy support is provided for the development and production of products like nylon 11, nylon 12, nylon 1414, nylon 46, nylon 56 (using non-food biomass as feedstock), long-chain polyamides, and high-temperature resistant nylons.
- Composite Materials: Explicit encouragement is given to the production and application of high-tech products like continuous fiber reinforced thermoplastic composites and prepregs, resin matrix composites with temperature resistance >300°C, biodegradable resin matrix composites, carbon/carbon composites, and high-performance ceramic matrix composites, aiding the upgrade of the high-end equipment manufacturing industry chain.
Furthermore, the production of organic polymer materials such as aircraft skin coatings, cerium sulfide red pigments (rare earth), lead-free electronic packaging materials, and photoresist slurries for the integrated circuit industry is also included in the encouraged list.
Notably, this edition of the catalogue strengthens guidance for the chemical new materials industry in central and western regions. The regional catalogue specifically expands the encouraged scope in areas like fluorine-containing fine chemicals and polyurethane new materials. It also tilts encouragement towards the production of rubber and plastic products (e.g., biodegradable plastics and products, new photo-ecological multifunctional wide-width agricultural films, vacuum aluminized films, functional polyester (PET) films) and non-metallic mineral products (e.g., elastomer-modified asphalt waterproof membranes, wide-width ethylene propylene diene monomer (EPDM) rubber waterproof membranes, thermoplastic polyolefin (TPO) waterproof membranes) in central and western regions, promoting a differentiated and synergistic industrial layout for foreign investment nationwide.
As a crucial policy tool for promoting foreign investment in China, the Encouragement Catalogue has undergone four revisions in 2019, 2020, 2022, and 2025, continuously expanding the scope of encouragement for advanced manufacturing. Experts indicate that the precise focus on the chemical new materials field in this new edition not only demonstrates China's firm resolve to expand high-level opening-up but will also help enhance the modernization level of China's industrial and supply chains by guiding foreign investment into high-end materials. Global chemical enterprises can leverage this policy dividend to deeply participate in the division of labor within China's high-end manufacturing industry chain, achieving mutual benefit and win-win outcomes.
Currently, the full text of the Encouragement Catalogue and related annexes have been officially released. Enterprises can consult the detailed content through official channels.
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